Kincora Copper: Final Resolution of Two Year and C$7 Million Dispute

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 4, 2015) - Kincora Copper Limited (the "Company", "Kincora") (TSX VENTURE:KCC) is pleased to provide an update following the final resolution relating to the former two licenses held by its wholly owned Golden Grouse subsidiary that were revoked as part of the 106-license dispute and resulted in a C$6,952,000 impairment in our September 2013 financial statements.

Following due process and as specified in the competitive selection process, Kincora has regained the said licenses as new with a full 12-year term. The two Golden Grouse licenses were originally acquired in April 2012 by Kincora and are adjacent to our more advanced Bronze Fox project, again consolidating Ivanhoe's original and high priority regional land package (refer Exhibit 1). The Western license in particular has a favourable structural setting and from previous surface exploration and shallow drilling is considered prospective for structurally controlled and/or epithermal high grade gold and also copper, the later convincingly confirmed with a fertile porphyry setting. The Western license hosts the Khunguut (copper-gold - extension of the West Kasulu prospect on the Bronze Fox license), Tourmaline Hills (gold-silver and gold-copper), West Fox (gold) and Southwest (gold) prospects.

Exploration activities in the one field season Kincora had unimpeded access to the Golden Grouse licenses focused on drilling at the West Kasulu prospect on the western neighboring margin of the Bronze Fox license, including hole F62 (>800m @ >0.40% CuEq, including 37m @ >1% CuEq), and its continuation into the Western license at Khunguut, with 15 holes also drilled at the Tourmaline Hills gold prospect. In all, 16 holes for 6,742 meters were drilled (all holes <400 metres, expect for one 407 meter hole) on the Western license by Kincora, with 23 and 24 holes historically drilled by Temujin Mining and Ivanhoe Mines respectively and a total of 33 trenches, before the license was revoked with no drilling at the West Kasulu prospect in 2014.

Commenting on today's announcement, Sam Spring, President and CEO of Kincora, said:

"Uncertainty and the revocation of our Golden Grouse licenses has significantly impacted Kincora and general investor confidence towards Mongolia for over two years. We welcome this resolution in the most equitable and timely manner available to us, taking into consideration the interests of our shareholders and avoiding the courts. Regaining the returned Western license is particularly significant given its strategic importance, common geology with our Bronze Fox license, prospective previous results and favourable structural setting.

The 106-license dispute has materially impeded Kincora's exploration efforts, including at Bronze Fox, and our corporate discussions and strategy. Following its conclusion we again have unimpeded control of our corporate strategy and are actively seeking potential options to now enhance shareholder value, both in Mongolia and elsewhere.

I would like to thank our Mongolian team for their considerable effort and persistence, and all those who have contributed to our lobby, to see this issue gain the attention it has and bring it to conclusion in the quickest possible timeline."

Minter Ellison, a leading full service international law firm with a permanent office and physical presence on the ground in Ulaanbaatar since 2012 advised Kincora in this matter.

According to resident managing partner Elisabeth Ellis:

"Security of tenure and due legal process are fundamental cornerstones for continued foreign investment and private sector business activities in Mongolia. The return of Kincora's licenses sends the message that the Mongolian Government recognizes this, as well as the importance of transparency in its dealings with participants in the mining sector.

This is timely and welcome news for foreign investors with assets in Mongolia and those considering an investment in the country."

106-license dispute update

As previously announced the first of up to two competitive tenders for a total of 13 licenses impacted by the 106 dispute, including those previously held by Kincora, took place on January 9th (refer to our January 12th, 2015 press release), with a second and final tender on February 11th. To date 42 licenses impacted by the 106 dispute have had their 'threshold price' agreed, with 29 licenses returned to the former holders, 5 remaining property of the State, 6 acquired by third parties (one being sold for 9 billion MNT), and 2 others received their first re-tender on February 25th.

We hope other impacted groups yet to either receive cash compensation or the return of their former licenses, gain a similar equitable resolution. Security of tenure and due legal process are two fundamental cornerstones for private sector activities with this dispute, and its initial criminal court cases, having much larger implications for foreign direct investment than those groups just directly impacted. Recent legislative and political instability, coupled with various negative media headlines, disputes and concerns regarding the judicial system, continues to impact investor sentiment towards Mongolia particularly given when other countries are more welcoming of investment and in the context of the current difficult global markets.

Summary of disputed Golden Grouse licenses

North Fox - Returned with a full 12-year term and reset minimum expenditure requirements.

Geological mapping over the north license (formerly 15076X) was completed in late 2012 with 174kms mapped at 1:50,000 scale. A zone of copper and gold mineralisation associated with magnetite-quartz-tourmaline veins and breccia was identified. The purposes of those activities were to meet the minimum tenement expenditure requirements and also to gather further basic geological information, which was previously lacking for the license. Total previous estimated historic exploration expenditure relating to this license is in the order of $150,000.

Subsequent analysis supports the northern license being the potential margin associated with northward emplacement of the Devonian intra-oceanic arc of which the Oyu Tolgoi and Tsagaan Suvarga Cu-Au and Cu-Mo porphyries are key components.

Western license ("Tourmaline Hills") - Returned with a full 12-year term and reset minimum expenditure requirements.

Attractive gold mineralization has also been intersected in 9 of the 16 holes drilled in 2012 by Kincora, returning intervals of >1g/t Au, up to 7.7g/t Au and with up to 75g/t Ag locally in the mineralisation zone, often with elevated copper values. An extensive and high-grade surface zone has been identified (up to 100 g/t Au) and active artisanal mining during the summers is common at the Tourmaline Hill and Southwest prospects, and various Bronze Age pits/workings evidenced at the former. One new mineralisation zone identified in 2012 appears in the west of the Tourmaline Hill prospect (including hole F81 with an accumulated 4m @ an average of 2.84g/t Au and up to 75g/t Ag locally) that has an IP signature of about 1.5km strike length that remains to be tested.

Fertility analysis subsequently undertaken clearly demonstrates magmas that formed in the Bronze Fox Instructive Complex (the western edge of which cross from the Bronze Fox license to the Western license) and the Tourmaline Hills Intrusive Complex ("THIC", solely located on the Western license) had been through a mid-crustal, hornblende-dominated fractionation process of the style that drives magmas towards the ability to exsolve hydrothermal fluids capable of forming an economic porphyry copper deposit. This is a very positive outcome. Routine application of the same methodology to other suites in Palaeozoic E Australia, Palaeozoic and Mesozoic SE Asia, Tertiary rocks of the SW Pacific, and elsewhere in Mongolia, have shown that many intrusive suites that appear potentially to be good porphyry targets lack the fertile signatures, and should be of no exploration interest.

Most of the existing high IP chargeability anomalies currently defined on the Western license (noting more limited geophysics, both laterally and depth coverage, than on the Bronze Fox project) have not be drilled, and those that have, have reconciled well with returned sulfides, which are the carrier of gold and copper mineralization. While historical exploration and existing targets warrant further drill testing for resource potential it must be noted that only a small part of the Western license has experienced any exploration. Existing geochemistry, IP, magnetic and returned copper and gold drill core anomalies warrant both further exploration but also more extensive coverage across the Western license. While an earlier stage of activities, zones within the Western license often return greater levels of alteration and thicker mineralized veins, including bornite.

The scientific and technical information in this news release was prepared in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and was reviewed, verified and compiled by Kincora's geological staff under the supervision of John Rickus, Chairman and Director of Kincora Copper, who is the Qualified Person for the purpose of NI 43-101.

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